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Mirin Has Filed for Chapter 7 Bankruptcy Relief

Question 59

Multiple Choice

Mirin has filed for Chapter 7 bankruptcy relief.Mirin had borrowed money from a best friend,Rene,for the purchase of a car.Mirin really wants to repay Rene,but does not want to jeopardize the bankruptcy relief and discharge of a number of other debts.What option,if any,is open to Mirin?


A) No options are open to Mirin because any payment to Rene would be considered a voidable preference.
B) Mirin can reaffirm the debt to Rene,and the bankruptcy judge has no authority to interfere in that decision.
C) Mirin can reaffirm the debt to Rene,but the bankruptcy judge has the authority to disapprove of the agreement if the court finds that it is not in Mirin's best interest.
D) Mirin can reaffirm the debt to Rene but only up to 50 percent of the maximum amount owed,and the bankruptcy judge has the authority to disapprove of the agreement if the court finds that it is not in Mirin's best interest.

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